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tv   Trending Business  Bloomberg  October 27, 2015 10:00pm-11:01pm EDT

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gears. changes to a 16-year alliance with renault. let us know what you think of today's business by following me on twitter. let's take a look at the markets now with sherry. a lot of risk. people in the sidelines ahead of the the or j meeting. sherry: there's no clear direction on the markets today. fewstors are waiting a factors today. personal, negative sentiment coming from wall street as markets declined across the board on mixed on news. people are cautious because of the fed in the boj coming in this week. so we see the shanghai composite following after rising for four consecutive days.
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the hang seng index also falling .1%. the nick a bucking the trend, up .6%. some disappointing retail that has to do with sales. kospi down.-- the the economy is seeing some may caught -- some recovery. reversing all of this week's losses. and that is after we had inflation data that actually missed estimates. we had bpi growing in the third quarter less than expected. it grew .5% compared to the growth of europe in the second quarter. after that, inflation data -- after that inflation data came out, the us trillion dollar plunging down 1%.
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the japanese yen has also seen some strength lately. it is now strengthening for the third consecutive day as investors who are cautious about flocked and boj decision to save havens. the yen currently at 120. let's look at some tough stories today. david: there are a lot of tech stories out. take a look at apple. results were out for their fiscal fourth quarter. again, impressive numbers. we are talking about a few sincere. 50 billion. a growth margin of 40%. they don't even have to market their products to market up that way. it is a company that, when it sells its products, the world
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waits. let's look at their growth in china. that has been a growing market for them. they have gone literally from zero to 60 billion over six years. this current quarter, we are looking at 75 billion at least if they meet the minimum. 75.5 billion, actually. would clear the analyst estimates. let's move things along and have a look at alibaba. what really surprised a lot of people for alibaba is that he -- they did manage to show they are fairly immune from the negative macro story in china. free cash flow, $2.1 billion. the metrics are higher than estimates, very impressive come
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across the metrics. they were -- ok, i'm getting confused here. it showed still substantial growth. were $1.6enues billion. what is important to note, it's topline growth received from alibaba is fueled largely by a rise in and no active buyers and users. so the pie still growing. othertake a look at the side of the spectrum, twitter. twitter is having a difficult time. -- difficult time convincing the stock market the company -- you have company shares plunging after hours. its fourth-quarter forecast may miss as much as 6%. it is completely off of the picture from apple. jack dorsey has been fairly candid about the challenges of the company. the slowdown in growth show that him and his team face a tough
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task of trying to turn around the outlook. twitter saw a third-quarter net .oss its user base grew by just 11%. it is still growing, but not as much. permanent named the ceo earlier this month after taking on the role temporarily. since then, he has introduced new products. he cut a percent of the workforce. and he hired an executive at -- a new executive chairman from google to improve oversight. shares have call on more than 12% so far this year. if you go back to her three years, the company's value has gone from 42 billion at the end of 2013. right now, it is about $31 billion. back to you. the future of driving now. cars,: the concept
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electric. show is at the tokyo motor for us and has a special guest. craig: yes, you had it exactly right. tokyog question of the motor show is what the you have that is green and what you have that drives itself? the answer is right behind me. concept, can you tell us a little bit about it? mr. ghosn: we have -- we think the car industries moving in this direction.
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craig: it looks very leaf-white to me. is the indicative of where you want to take the leaf in the future? : they are more compatible with electric cars. electric cars allows you control in detail of the power. this is extremely important when into a connected car. you really need to be in control of the car because you want something extremely reliable because you're going to rely on the car without intervention of human beings. i am not saying this is the only week ago. but an electric car is an advantage. which is why you will see more these concepts with electric. craig: is it something you can have on the road by 2018? could you turn this into production very quickly? mr. ghosn: we are -- very quickly? envisioninge are
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2020 as fully autonomous. it is the most public it a configuration. our manufacturers, including ourselves, with autonomous cars on the highway or in traffic jams. the most couple catered, the one that would present the most complexity is city driving. that will take more time. technologycause the is still being developed, but it will also require the regulator, the legislator to agree. there will be a part that is purely private. that is the part we are doing. but the part of the discussion with the public sector to make sure that it will allow you to use this technology, which obviously requires a demonstration that it is reliable and it is safe. craig: how much of a question still remained on reliability? is linked reliability
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to reliability of the system. that is one of the biggest challenges of th technology. that is why we are working so hard on it. we know pretty well about how to obtain what we want. theit's the reliability of system. particularly something that is extremely important, one of the challenges of autonomous drive is the cartography, the maps of the city. they have to be very actual and extremely precise. craig: i want to talk about an issue that is extremely important, the future of the renault-nissan alliance. the state of affairs with renault, nissan and the french government at this moment? where do the three parties stand today? mr. ghosn: for the last 16 years, this alliance has been very successful. we have demonstrated very clearly that the alliance is the most valuable thing for renault and the most valuable thing for
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nissan. both companies are extremely motivated. talking about the board of each company, the executive committee of each company, and the officers, the managers and employees, because they have seen over 16 years how much the alliance has been beneficial for each company. that is a consensus not only inside the company, but all the shareholders of both companies. alliance is a good thing. it needs to continue. because of this, i'm not so were that, from time to time, you're going to have prices or divergence. -- prices divergence. factre motivated by the that the alliance is the biggest asset and you have to preserve or come to a reasonable solution. over the last 16 years, you and the media, you do not know what is going on inside. when other -- whenever there is comesis or a problem, you
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to a solution. i have been doing that district lee -- doing that discreetly. thisnot so worried about execution because there is enough common goal in order to bring the resolution. craig: is the solution for the french government to do what it said it would and sell its stake down? mr. ghosn: i am not going to get into who does what and who thinks wet. but what i'm going -- and you what. but what i am going to tell you is they are very mature, very responsible, between the different parties. we will come to a solution acceptable to everybody, reserving the lines not only on the short term but on the long-term. craig: so many players on the board. will the board be meeting to discuss some of these matters? mr. ghosn: no, there is no board meeting. now we are in the tokyo motor show. this is a big party. technology. product parties. no, no, no. this is business as usual.
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confidence doh you have that the french government is on the same board with you? they talked yesterday about creating balance. is there an imbalance right now between renault and nissan? mr. ghosn: you know what, again, we need to look first of all is the resounding yes from everybody. is the alliance good for no? is the alliance good for nissan? yes.ounding as long as you have this attitude, everything will be favorably resolved. craig: you are the head this year of the carmakers association. the carmakers association in japan was critical of the situation lately with volkswagen, saying they betrayed the trust of the consumer. how concerned are you about this and having issue collateral damage for other automakers? mr. ghosn: i am not going to
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make amends on any carmakers in comments on- make any carmakers in particular. i don't think that is adequate. people look at this product and, at the base of their is trust.ip with us the automaker has to always alive andhis trust strong. which requires obviously a high level of transparency, a high level of communication, and high level of coming forward into whenever there is a problem, recognizing it, and trying to solve it. we know that. we have learned through many, many years of experiences. many carmakers of had problems of different sorts in the past. without any doubt, i think preserving this trust and i thinkng this trust -- preserving this trust is our number one goal. know one car that
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won't have an issue with emissions, fuel cell vehicles. mr. ghosn: cars that are not on the road have no problem. but electric cars, we are sold 200,000 of them in there and omissions. -- there are no emissions. there's nothing to measure. craig: what are your impressions of how that market is forming? think we: frankly, i have prototype of fuel cells. prototypeskers have of fuel cells. i don't they we are in the same stage. you can see them. you can buy them. there is the price. there is the resale value. there is everything. fuel cells are still on a very advanced stage of mass marketing. me, mass this, for marketing is when you start to sell 50,000 cars a year.
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if you sell 1000 cars a year, that is not missed -- that is not massmarketing. that is a niche market. we have our own allotment of fuel cells. we are a little bit more conservative because we are facing a little bit of headwinds on the electric car because of the lack of charging infrastructure. and we have the same problem from the other side. i would say magnified because of the complexity and the cost of the charging of a structure for hydrogen. so again, as much as i am positive about the technology, which is very promising for the future, i am a little bit conservative into the timing it will take to really massmarketing it. again, mass marking for me is not selling 1000 cars a year or 10,000 cars a year. we are talking about selling 100,000 cars a year, and not in one market. across the globe. craig: thank you. all right, thanks a
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much. great work coming from tokyo. coming up, the european economy is being helped by lower energy prices. but kuhn's structural problems in the refugee crisis threatened the recovery? romano prodi when he joins us later. golden opportunity. we will look at one of the world's biggest bully and singapore is a stepping stone for plans and asia. ♪
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yvonne: well move -- welcome back to bloomberg television. all that glitters is gold? not really anymore. to an annualaded drop. low inflation and a stronger dollar are cutting the appeal of gold as a store of value.
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but not everyone agrees. degussailla handles -- handles the biggest bully on -- boulion storage. guest: if you look at the development in the last couple of years, we see selling in that ats trading and paper gold. through now.y there are still some selling but not to the extent we have seen. a first reason. the demand is rising, both for jewelry and for retail investments, for example. and lastly, mine production is not really rising on the supply side that fast anymore.
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if you take everything into account, there is no reason why we should go to 1000. 1500 in my point of view, is more than enough. the rate hikes might come, but at the same time, we might end up globally -- also in europe the same situation for many years to come in a japanese-like situation. very low interest-rate environment. 25 basis points points would not make a difference. haslinda: some say that gold is no longer a safe haven. you disagree. wolfgang: our clients disagree. they show that every day coming into our stores, throughout europe and now also in asia. we see very strong buying of
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coins, and this is clearly a safe haven buying. people are not panicking. that was the case in 2008. but it is more like a quiet accumulation of some gold stock. haslinda: why singapore? kong, for instance, where it is closer to china line you have closer to the wealthy people whom you are accommodating? wolfgang: there are a lot of people in this region, in singapore and around singapore as well. we are a retailer. when a market has a certain size, we are perfectly fine with it and singapore has that size with 5.5 million people, 60 million tourists a year. environment, politically as well as
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economically it. so it's a perfect place. plus, there is a lot of support aom the government to create vibrant gold market here in singapore. so we feel very comfortable. haslinda: where are we in getting to that vibrant gold market in singapore? in its infancy still or? would say in the infancy phase. yes, that's right. participate and not -- in enough local markets, that means buying and selling gold. you need a refining -- you need a refinery. opened inone singapore last year. i think that is a good move for the country. and then gold traded is up. haslinda: we will have to leave it there. short break. keep a short break. keep it here with us on bloomberg television. ♪\
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tonne: we are counting down the rugby world cup finals. new zealand will face australia. last time around, australia in 1991 and 1991. owens: as a player, you
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always have to put that to the back of your mind. now you can exit talk about it because we are hitting the right plans in the game. >> you talk about just doing a job well everyday. there is still a game to play in that is the most important part of the weekend doing our job really well. the key thing is to improve. you have to keep improving. the bar is going to go up and down this week. ♪
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yvonne: nissan ceo carlos gone has confirmed that discussions are taking place aimed at preserving the carmakers aligns with renault. ghosn told bloomberg television that all parties on a stronger alliance. assan is aiming to having driverless fuel-cell car on the road by 2020.
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22% sincees jumped september. tim cook says apple will continue to invest heavily in china. have 40 is on track to stores in the middle of next year. shares returned from a one-day trading halt after the bank confirmed it is selling 80% of its life insurance unit to nippon life. those impressive results in the world's most valuable company, apple reporting some stellar numbers and even gave more stellar guidance. : what company in the world makes 75 billion in sales a recorder?
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let's talk about the most recent send -- recent set of results. just atalking about little over $11 billion in net income. cross margins a little closer to 40%. that even widened from the previous quarter. there is a guidance we were talking about earlier. so if it does come in at the top end, it does beat the analyst estimates here. a lot of this will have to do it china. and the business has really grown. records go back to 2010. billiongone from $4.5 to closer to $60 billion. this is the entire year, by the way, the fiscal year for apple just ending last month. furtherjust going to go really. in fact, tim cook said i wouldn't know there are even economic issues in china just
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looking at how much they have sold here. yvonne: all right, thanks so much. as go back to the markets. how much movement today? installed, fed meetings, bank meetings, the boj on friday. : investors cautious this week ahead of those policy decisions. bloomberg keeps track of 315 suppliers to apple. many of them are here in asia. today, we'll get -- we will extract those stocks. taiwanese manufacturers are pretty dependent on supplies to apple. all have precision and pegatron, for example. honghaitheir -- precision and pegatron, for example.
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you have samsung electronics currently unchanged. of course, samsung competes with apple in the smart phone market. .ut they also depend on apple 5% of their revenue coming supplies to the american giant. manufacturers,e shot down .7%. i want to take you through some stocks in china. take a look at what locks it on is doing. in china, it is plunging. that is after they announced their profit. also, paying on insurance -- o brewery- tsingta missed estimates. let's get more on this
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from bloomberg intelligence asia .nsurance analyst reporter: if you look underneath the surface, they have lost in termsbillion yuan of market market losses. what is that mean? it means there -- their portfolio shrank considerably. mooring courage and leona brightside, when we look at the life remains growth and the pnc site, they are not too bad. in terms of premiums, they are actually up about 45%, much higher than last year's pace. somee pnc side, they have [indiscernible] which can track down the
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underwriting margins. yvonne: what is it -- what is really going to drive it when it pin --o paying an -- two to ping an and their shareholders? get benefits will from policy supports, like health insurance and pension products and so forth. on the nontraditional side, which is kind of unique for ;ping an, it is lending quite rapidly on the online platforms. kingshipalk about the -- the key challenges, especially in the near to midterm. : their name is a systematically important insurer. only nine in the world and they are the only one in asia. when it comes down to that, it means possibly more charges in terms of capital. so they need to conserve more capital can's desk compared to
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their peers. as you can see -- they need to conserve more capital compared to their peers. as you can see, there is always a conglomerate discount for the company. yvonne: thank you for joining us. let's talk about more news now. national australia bank shares looking like this right now. after reporting a 60% rise in full-year profit this morning. the bank also confirmed that partial sale of its insurance unit. paul, let's start with the four-year result. it was pretty much not what analysts were expecting. paul: no, it's not. have prettyays giddy expectations when it comes to australia's banks. they had been expecting a four-year profit of 6.2 7 billion. the five date billion dollars
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was somewhat of a disappointment. as a result, we see shares off today. at dividend was is expected $.99. but it's the detail that everybody was really looking for, particularly around the nab insurance unit. to nipponwill be sold life for $1.7 billion. however, nab will realize a $1 billion loss because of transaction separation costs involved in that deal. , nab is exiting at u.k. interests. it is getting rid of its troubled clydesdale bank. they should be rid of it by february next year. it has been a longtime company. and it will close the book on a disappointing chapter for national australia bank. thank you. let's check in on some other earnings results today. southeast asia's biggest --
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second biggest bank reporting its profit last year. a cbc earnings topped 94 billion singapore dollars. that is about $46 million u.s. banks must contend with weaker lending as the economy slows in asia. the company is bracing itself for a prolonged period of located prices, bp. bp is planning more asset sales and reduce investment over the next two years. it is the first of the world's largest nonstate oil companies to announce earnings. ford says it will deliver strong results in the years to come despite third quarter profits
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that disappointed investors. thes bizarre to think that company has let the current -- let the market down. income more than doubled from a year earlier. but earnings of $.45 a share missed expectations and sent the stock into a slide. however, ford maintained its four-year forecast. hong kong's repetition for high-end shopping is increasingly under pressure. coach, product, rolex and others have long been located in central. that things are changing. luxury retailers have struggled under the weight of skyhigh rents and falling sales. lisa, take a look at some of in central.s this is really a seismic shift. lisa: yeah. retail sales in hong kong have been falling quite dramatically. -- and they watches and jewelry sector are the most
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impacted. it has been falling 11 months year on year. as a result, there are quite a few retailers where rents were cut with their landlords and in some cases not renewing their leases. yvonne: so who is moving in? lisa: we are seeing a lot of retailers and a lot of brands with broader mass appeal moving in. a cosmetics retailer called bonjour is now where you are able to buy expensive watches. of buyingtead expensive watches, you can buy fake hello kitty eyelashes. [laughter] yvonne: it is not just the skyhigh rents we're talking about. we are seeing a very big decline in tourist numbers heading to hong kong as well. this lull. how long do you think that is going to last?
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lisa: we have seen mainland chinese tourists dropping the numbers of them coming to hong kong. there are two things happening. one is the wealthy chinese are going to other places to spend their money. for example, europe and japan, because the currency is in their favor. another thing we are seeing is the mystic chinese airlines. they are now offering direct flights to places like paris. people no longer have to go to hong kong on transit. this means there is a drop in people coming to hong kong. how long this will last, that is the big question in the industry at the moment. yvonne: thanks so much. coming up next, the inside line after the break. bank, wesive central will speak to the former italian
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prime minister romano prodi. stay with us. ♪
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six eu countries are being sued by the european commission for failing to enact laws that allow depositors to have their savings taken. nations, the u.k., the u.s., canada, australia and new zealand have implemented plans for so-called ale in -- bail-in should financial institutions get into trouble. corporate deposits can be compensated with depositors becoming shareholders of institution. rescue workers say the number of people killed in the powerful earthquake in afghanistan is expected to rise. when hundred 15 have died along with 258 more across the border in pakistan. with0 15 have died along
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258 more across the border in pakistan. was centered in the hindu kush mountains and was delhi. far away as the choking haze has now cut oil production and briefly cut -- briefly shut a bp gas plan. this strong el niño has made this year's hey the worst in records. -- they -- the ecb per ecb describes prospects as subdued. formerh a prime minister. haslinda:
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dealing with a lot of problems, -- among them the migrant prices, making the situation even dire. let's get perspective from romano prodi. professor prodi, it is good to have you with us. this market issue is not a new and but it has escalated. can there be a common policy in europe? isfessor prodi: it impossible to have a common policy. because each country is hit in a different way, you know. migrant base, we have a demographic crisis in germany, in italy, spain, now in poland. we need immigration. now, with two wars in syria and libya, it is totally unregulated.
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many times when qadhafi was president did he turn to send me boats of ingrid -- boats of immigrants? manage the influx of immigrants. but in this situation, it is really impossible to have a common policy. common policy and more and more countries are seeking to close their borders. what now? what is the risky scenario here? isfessor prodi: the scenario similar to the american one. you stop world immigration but this is a tragedy because europe has always been, let's say, having a different policy. iso hope -- the real problem to bring the emergency to a normal immigration where you can
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tackle the problem step by have agreement with the state. if you don't have agreements, you have [indiscernible] angela merkel did a fantastic effort. but then politically, she couldn't keep it because people are frightened. when you have migrants coming in floods, people are absolutely frightened. and you have to regulate it. haslinda: what can italy do? how can -- how much pressure can italy put on? it is, after all bearing the brunt of it. professor prodi: italy has been alone for many years. now the biggest flood is coming from greece and syria. we gave them assistance. back to regular
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people. it's a long, long process. now the real effort is to give assistance and some sort of sharing of the burden all around the country. but politically, we have everyday problems for housing in all of italy's cities. haslinda: no common solution. can the problem then be the cause of a different situation in europe? professor prodi: not at all. haslinda: why not? prodi: europe is so integrated. we have a lot to complete europe. i'm not satisfied. thatverybody understands with integration, we will drop to the old soviet problem in these country -- in the east countries.
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haslinda: how do you see the growth situation in europe? satisfied, but: not as pessimistic as before. [indiscernible] and we have very slow growth. , we have [indiscernible] with growth in china slowing down and then with turkey and then we have asia at consequence. same, i don't think we have consequence. but the volkswagen case has put a lot of uneasiness in europe. haslinda: how about grace? -- how about greece? threat?e still a
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the infusion is coming soon. the question is whether they can unlock the money. prodi: they are not a threat. with more and more wisdom, this could not be a threat. 2% of europe, can you believe that? in the current situation, it is not an economic this a city to have the greek crisis. under the disagreement between greece and the european institutions, but they [indiscernible] prodida: professor romano here in singapore. coming up next, the social media reaction to a new chinese propaganda song. ♪
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yvonne: let's look at what is trending today. the chinese propaganda that it out. i can say catch it, but maybe in a bad way i guess? david: we look at the reaction on social media. it is in english, by the way. you have the big mix in the communist party meeting to plan out the next five-your agenda, five-your plan for china. , i will let our viewers have a look and listen and decide how they want to judge this. [video clip] ♪ >> ew, did i hear that right? what? >> but how do they make all the
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plants? there is actually more research and more discussion. yvonne: you know what it is? david: it is almost beat -- it -- itistake cross between is almost a cross between "south [indiscernible] yvonne: everybody has been talking about it on the mainland. david: just because how catchy it is. if you want to know what china is going to do, you have to check at the 13th five-your plan. i think i have one more. thanks for that. which is catchy. yvonne: which is probably the point. all right, we will be listening to it all day.
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that is it for us. edge" whereor "asia angie recaps the big stories of the day. you're watching bloomberg tv. ♪ ♪
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mark: we will be watching closely. ♪ mark: on the show tonight, it is all about the benjamin, specifically benjamin carson. he is now ahead of donald trump in four street iowa polls.

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